02- SNP Overview

Business Consulting Services

SCM APO 4.0 TRAINING COURSE IN SUPPLY NETWORK PLANNING

Unit2: SNP Overview

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COURSE OVERVIEW DIAGRAM

1Course OverviewIntroductions & SCM Ov

2SNP Overview

4SNP Master Data

5SNP Transaction Data

3SNP Configuration

6Supply Chain Engineer

8SNP Optimizer

7SNP Heuristics

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12

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Core Inter face

Deployment Optimizer

Deployment Heuristics

9Capable to Match

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COURSE OVERVIEW DIAGRAM

Day 1 Day 2

SNP Master DataSCM Overview

Day 3 Day 4

SNP Optimiser

Dep. Heuristics

SNP OptimiserSNP Heuristics

SNP Optimiser

SNP Master Data

SNP TransactionData

SNP Heuristics

SNP Overview

SNP Configuration

Unit2: SNP Overview | 2005

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APO AND SNP INTRO: UNIT OBJECTIVES

At the conclusion of this unit, you should: Understand the processes that APO

supports Be familiar with the APO architecture Understand the SNP Business

Applications Be introduced to SNP functionality

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APO INTRODUCTION

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SAP SCM SOLUTION COMPONENTS

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SAP SCM SOLUTION

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APO BASIC SCOPE & FUNCTINALITY

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THE SUPPLY CHAIN: ORIGINAL SUPPLY TO FINAL CONSUMPTION

Increase Customer Responsiveness at Least Cost

Manufacturing DistributionSupplier

INFORMATION FLOW

Retail Outlet Consumer

Supply Chain Optimization

CASH FLOW

Transfer Transfer Transfer Transfer


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TO BE COMPETITIVE, INCREASE REVENUES AND MARKET SHARE AND BE PROFITABLE

Companies need to ……. Have the right product at the

right place at the right time Improve replenishment cycle time Improve Return on Inventory

investment Increase utilization of

capacity/resources


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APO Stands for Advanced Planning and Optimization It’s intent is to enhance global planning capabilities

supported through advanced heuristics and optimization algorithms

An Advanced Global Planning Tool Not an Execution System A Tool to control the entire Supply Chain A Package focussed on Constraints (Material,

Capacities) A Tool capable to replace some current OLTP

Functionality


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APO PRODUCT MAP

Monitor

Strategic

Tactical

Operational

Scheduling

Supply Chain Cockpit

Network Design

Supply Network Planning

Purchasing WorkBench

ProductionPlanning & DetailedScheduling

Distribution Planning &Deployment

Transportation Planning & Vehicle Scheduling

DemandPlanning

SELLBUY MAKE MOVE

Collab. Planning

STORE

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TRANSACTION DATA TRANSMISSION

The Master data is transferred from SAP R/3 to APO in the beginning. The Transaction Data is also transferred from SAP R/3 to APO in the beginning. Subsequently, the Transport and Production orders are usually transferred from SNP to SAP R/3 after each run, and data such as inventory status is passed regularly from SAP R/3 to APO

R/3

Master DATA

Transaction Data

Initial Transfer

Incremental transfer

APO

Master Data

Transaction DATA


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APO APPLICATION ARCHITECTURE

OLTP APO

GlobalATP

Deployment

OLAP

HistoricalData

External Data

(e.g. POs

KeyPerform.

Indicators

Demand Planning

SalesOrders

ManufacturingExecution

updatesInventory

Movements

ProductionPlanning anddetailedScheduling

SupplyNetworkPlanning

TLBTP/VS


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APO PLATFORMSOperating Systems Windows NT HP UX IBM AIX Sun Solaris Compaq True64 Unix, Siemens Reliant Unix


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APO PLATFORMS

Data Bases Oracle SQL-Server


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CLIENT CONCEPT Similar to R/3 One APO client to n R/3 clients Live cache‘ applications on client

– SNP

– PP/DS

– TP/VS

– ATP

BW Basis for Demand Planning– Not on client

– Needs to be organized via dedicated infocubes

APO

DB

liveCache


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WHAT IS SUPPLY NETWORK PLANNING ?

A planning approach to create Tactical Plans and Sourcing Decisions that takes the complete supply network into consideration

Deployment TransportLoad Builder

Supply Network Planning

Meet Forecast and Actual Demand by:– Optimal use of Manufacturing, Distribution and Transportation Resources

– Consider all constraints in the supply chain


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SNP OVERVIEW SNP ensures the optimal Use of Manufacturing,

Distribution, and Transportation Resources to meet Forecasts and actual Demand while considering all Constraints in the Supply Chain

SNP plans Production, Procurement and Transportation throughout the entire Supply Network using Optimizing and Heuristic Approaches

Configurable Profiles determine on how the System generates Supply and Demand within Short, Mid and Long-term Planning

SNP offers three competitive Algorithms: CTM, SNP Optimizer and SNP Heuristics


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SNP BUSINESS APPLICATIONS: Inventory planning and deployment taking into

account logistics and sales variability. High level capacity planning and macro global

scheming to aid with capital equipment decision making based on sales runs.

Visibility for planning with confidence. System provides cost- trend analysis for control on manufacturing expansion, Out-sourcing, 3rd party supply, etc.

Support system for modeling what if scenarios that would impact the bottom line.

Stores, DCs and VMI stock leveling with ability to build transport loads with predetermined constraints


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SCOPE OF SNP


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APO PLANNING FUNCTIONALITY SEQUENCE

Supply Network Planning (SNP)

Demand Planning (DP)

Production Planning (PP)

Detailed Production Scheduling (DPS)

Deployment

Planning Horizon

Transport Load Builder (TLB)

Transportation Planning and VehicleScheduling (TPVS)


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SNP PROCESS

Forecast

Supply Network Pl.

Demand Planning

Production PlanningDetailed Scheduling

Transport Load Builder

RecommendedTransportOrders

Deployment

TransportOrders

PlannedOrders

Confirmed Transport Orders

Transportation Planning& Vehicle Scheduling


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DATA OBJECTS: DISTRIBUTION NETWORK

CustomerDemands

DistributionCenters

Plants

Transport Order Planned Order

Suppliers

Purchase Order


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SUPPLY CHAIN COCKPIT

Graphical instrument panel for modeling, navigating and controlling the supply chain

Provides the insight and control needed to effectively manage the entire supply chain

It is highly configurable to conditions within a wide variety of industries and business situations


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SUPPLY CHAIN ENGINEER

Used to create and maintain supply chain network models

The network model represents a specific supply chain and consists of individual nodes and links

A model can have different planning versions

Several models, each with different versions can be created for simulation purposes


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OBJECTS IN THE SUPPLY CHAIN NETWORK

Objects include: Locations Products Resources Production Process Models Transportation Lanes

provide links between objects in a supply chain model


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SNP PLANNING FUNCTIONALITY Supply Network Planning Strategies

Heuristics Optimization Capable to Match

Deployment Faire share, push rules and deploy to order Optimization

Transport Load Builder Leveling in transport loading

SNP

Deploy-ment

TLB

PP/DS


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SNP STRATEGIES SNP Heuristics: repair-based planning

Quota arrangements Production capacity check Capacity leveling

SNP Optimization: cost-based optimization Selection of best production site Optimization of production, transportation, and inv. costs Mixed Integer Linear Programming Metaheuristics Feasible solutions Calculation of quota arrangements

Capable to Match: supply to demand match Matches supply to available demand via production

and transportation capacity check


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DEPLOYMENT Fair share

Proportional Target fulfillment Deploy to order

Push deployment Pull-push deployment

Demand fence Supply fence New Orleans

Montreal

Chicago

WinnipegCalgary

Customer Philadelphia

Montreal

SAPCO


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TRANSPORT LOAD BUILDER Plan for loading of transportation

vehicles Maximum range of coverage Minimum/maximum load weight Maximum volume ATP check


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SNP PROCESS FLOWPlanning Area Administration

Planning Method Determination & Profile Settings

Supply NetworkPlanning Run

Transport Load Building

Deployment Run

Conversion intoPP/DS orders

PP/DS Planning

Release of SNPPlan to DP

Interactive Planning

APO Master Data Setup

Model/Version Creation

Supply Chain Model Setup

Release of Demand Plan to SNP

Simulation

Management by Exception


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POWERTASTIC, CO. SCENARIO

Direct Links

Mfg Plant I

DC II

DC I

Vendor I

Vendor II


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SNP OVERVIEW: UNIT SUMMARY

You are now able to: Describe the supply chain process Describe how SNP fits into APO

planning Describe the Supply Chain Cockpit Identify and describe the use of SNP’s

key components

02- SNP Overview

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Transcript of 02- SNP Overview